II 110th CONGRESS 1st Session S. 1967 IN THE SENATE OF THE UNITED STATES August 2, 2007 Mrs. Clinton (for herself and Mr. Smith) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide administrative ease and incentives for increased saving by Americans, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the New Savers Act. (b)

Table of contents

The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings. TITLE I—Savings and financial education at tax filing time Sec. 101. Opening of accounts on tax returns to facilitate savings. Sec. 102. Purchase of United States savings bonds on tax returns. Sec. 103. Return preparation clinics for low-income taxpayers. Sec. 104. Savings as a national performance goal. TITLE II—Access to wealth building financial services Sec. 201. Electronic transfer accounts. Sec. 202. Benefit cards and bank services. Sec. 203. Expansion of accessible and suitable financial services. TITLE III—Children's savings accounts Sec. 301. Young Savers Accounts. TITLE IV—Expansion of the saver's credit Sec. 401. Credit for contributions to qualified tuition programs and Coverdell education savings accounts. TITLE V—United States savings bonds Sec. 501. Savings bond marketing and access. Sec. 502. Tax credit to expand payroll savings plan. TITLE VI—Qualified tuition programs Sec. 601. Reporting of fee information. Sec. 602. Annual report of performance and participation. Sec. 603. Grant program to support State innovation in increasing participation in qualified tuition programs.

2.

Findings

Congress finds the following: (1)The personal savings rate was negative in 2005 and 2006 according to the Department of Commerce, meaning that combined spending outstripped disposable income for the first time since the Great Depression. (2)According to the Federal Reserve’s 2004 Survey of Consumer Finances, 17 percent of all households had zero or negative net worth, while 30 percent had net worth of less than $10,000. (3)Thirty-eight percent of all households are in a state of asset poverty, in that such households lack liquid financial resources to support their families for 3 months at the poverty level. (4)According to the Federal Reserve's 2004 Survey of Consumer Finances, 11 percent of households do not have a checking account and 9 percent do not have a transaction account of any kind. (5)Tuition and fees at 4-year public universities have increased 57 percent since 2000 according to the College Board, while the relative earnings power of those that receive post-secondary education has continued to grow over the past 25 years. (6)According to the Center for Social Development, the presence of savings and even small asset holdings by a household is associated with a range of positive outcomes, including increased economic stability, educational attainment and performance, and health and psychological well-being. (7)Increasing the number of households that save and the amounts that such households save will allow more Americans to achieve greater control, security, independence, and choice in their lives.